The transportation of goods from one place to another is facilitated by the filing of ‘E-Way Bills’ on the common GST portal. Similarly, the GST Council, in its 35th meeting, has decided to implement a system of e-Invoicing, which will be applicable to specified categories of persons. The CBIC formally notified the system of e-Invoicing under GST vide Notification No. 68/2019 – Central Tax, which inserted sub-rules (4), (5) and (6) under rule 48 of the CGST Rules, 2017 for the implementation of e-Invoicing.
e-Invoicing does not imply the generation of invoice on GST portal. That would be a myth. Instead, e-Invoicing involves the submission of an already generated standard invoice on a common e-invoice portal. Thus it automates multi-purpose reporting with a one-time input of invoice details. The CBIC notified a set of common portals for the preparation of e-invoices via Notification No.69/2019 – Central Tax.
ClearTax provides the best-in-class e-Invoicing software solution for enterprises. It offers variety of modes through which e-invoice can be generated by the companies such as the seamless API integrations or Excel mode or the FTP/SFTP. The user can enjoy numerous value additions such as reconciliation vis-a-vis e-way bill and GSTR-1 data, insightful reports, customised print template for e-invoice, data archiving, etc.
The taxpayers having an aggregate turnover exceeding Rs.100 crore should implement e-Invoicing from 1st January 2021.
Update as on 30th July 20201. A new refined format of e-invoice has been notified by CBIC adding 20 new fields and removing 13 fields. Certain fields have undergone changes in character length as well.
2. e-Invoicing system shall apply to those taxpayers with annual turnover exceeding Rs 500 crore instead of Rs 100 crore.
3. Special Economic Zones (SEZ) units shall also be exempted from issuing e-invoices.
Update as on 23rd March 2020The implementation of e-Invoicing and the QR code has been deferred to 1st October 2020.
Exemption from e-Invoicing and QR code has been granted to sectors such as insurance, banking, financial institutions, NBFCs, GTA, passenger transportation service and movie tickets.
Update as on 14th March 2020*The new GST return system will be implemented from October 2020.
The present return filing system (GSTR-1, 2A & 3B) will continue until September 2020.
*Subject to CBIC notification
As on 13th December 2019 CBIC notified the class of taxpayers who are required to generate an e-invoice on IRP. Those taxpayers who have aggregate turnover of over Rs 500 crores (earlier planned for more than Rs 100 crore) must generate e-invoices from 1st April 2020. Also the fields contained in the e-invoice have been notified in the CGST rules. As on 10th October 2019 GST Council has approved the e-Invoicing template and the mechanism. GSTN has released the finalised version of e-Invoicing template as an announcement on the portal. As on 20th September 2019 As per the decision that was taken at the 37th GST Council Meeting, the new GST return system for all taxpayers and for all forms will be implemented from April 2020. In August 2019 GSTN has released a draft template of e-invoice for industry feedback by 20 August 2019 known as e-invoice schema.e-Invoicing has been made applicable from 1st October 2020 to all businesses whose aggregate turnover has exceeded Rs.500 crore limit in any of the preceding financial years from 2017-18 to 2019-20. Notification No.61/2020 – Central Tax prescribed the turnover limit for the implementation of e-Invoicing from 1st October 2020. Notification No.71/2020 – Central Tax prescribes the time period considered for determining eligibility under e-Invoicing.
Further, from 1st January 2021, e-Invoicing will be applicable to businesses exceeding the Rs.100 crore turnover limit in any of the financial years between 2017-18 to 2019-20, as intimated in Notification No.88/2020 – Central Tax.
However, irrespective of the turnover, e-Invoicing shall not be applicable to the following categories of registered persons for now, as notified in CBIC Notification No.13/2020 – Central Tax:
Sl. no. | Name of the field | List of Choices/ Specifications/Sample Inputs | Remarks |
---|---|---|---|
1 | Document Type Code | Enumerated List such as INV/CRN/DBN | Type of document must be specified |
2 | Supplier_Legal Name | String Max length: 100 | Legal name of the supplier must be as per the PAN card |
3 | Supplier_GSTIN | Max length: 15 Must be alphanumeric | GSTIN of the supplier raising the e-invoice |
4 | Supplier_Address | Max length: 100 | Building/Flat no., Road/Street, Locality, etc. of the supplier raising the e-invoice |
5 | Supplier_Place | Max length: 50 | Supplier’s location such as city/town/village must be mentioned |
6 | Supplier_State_Code | Enumerated list of states | The state must be selected from the latest list given by GSTN |
7 | Supplier Pincode | Six digit code | The place (locality/district/state) of the supplier’s locality |
8 | Document Number | Max length: 16 Sample can be “ Sa/1/2019” | For unique identification of the invoice, a sequential number is required within the business context, time-frame, operating systems and records of the supplier. No identification scheme is to be used |
9 | Preceeding_Invoice_Reference and date | Max length:16 Sample input is “ Sa/1/2019” and “16/11/2020” | Detail of original invoice which is being amended by a subsequent document such as a debit and credit note. It is required to keep future expansion of e-versions of credit notes, debit notes and other documents required under GST |
10 | Document Date | String (DD/MM/YYYY) as per the technical field specification | The date when the invoice was issued. However, the format under explanatory notes refers to ‘YYYY-MM-DD’. Further clarity will be required. Document period start and end date must also be specified if selected. |
11 | Recipient_ Legal Name | Max length: 100 | The name of the buyer as per the PAN |
12 | Recipient’s GSTIN | Max length: 15 | The GSTIN of the buyer to be declared here |
13 | Recipient’s Address | Max length: 100 | Building/Flat no., Road/Street, Locality, etc. of the supplier raising the e-invoice |
14 | Recipient’s State Code | Enumerated list | The place of supply state code to be selected here |
15 | Place_Of_Supply_State_ Code | Enumerated list of states | The state must be selected from the latest list given by GSTN |
16 | Pincode | Six digit code | The place (locality/district/state) of the buyer on whom the invoice is raised/ billed to must be declared here if any |
17 | Recipient Place | Max length: 100 | Recipient’s location (City/Town/Village) |
18 | IRN- Invoice Reference Number | Max length: 64 Sample is ‘a5c12dca8 0e7433217…ba4013 750f2046f229’ | At the time of registration request, this field is left empty by the supplier. Later on, a unique number will be generated by GSTN after uploading of the e-invoice on the GSTN portal. An acknowledgement will be sent back to the supplier after the successful acceptance of the e-invoice by the portal. IRN should then be displayed on e-invoice before use. |
19 | ShippingTo_GSTIN | Max length: 15 | GSTIN of the buyer himself or the person to whom the particular item is being delivered to |
20 | Shipping To_State, Pincode and State code | Max length: 100 for state, 6 digit pincode and enumerated list for code | State pertaining to the place to which the goods and services invoiced were or are delivered |
21 | Dispatch From_ Name, Address, Place and Pincode | Max length: 100 each and 6 digit for pincode | Entity’s details (name, and city/town/village) from where goods are dispatched |
22 | Is_Service | String (Length: 1) by selecting Y/N | Whether or not supply of service must be mentioned |
23 | Supply Type Code | Enumerated list of codes Sample values can be either of B2B/B2C/ SEZWP/S EZWOP/E XP WP/EXP WOP/DE XP | Code will be used to identify type of supply such as business to business, business to consumer, supply to SEZ/Exports with or without payment, and deemed export. |
24 | Item Description | Max length: 300 The sample value is ‘Mobile’ The schema document refers to this as the ‘identification scheme identifier of the Item classification identifier’ | Simply put, the relevant description generally used for the item in the trade. However, more clarity is needed on how it needs to be described for every two or more items belonging to the same HSN code |
25 | HSN Code | Max length: 8 | The applicable HSN code for particular goods/service must be entered |
26 | Item_Price | Decimal (12,3) Sample value is ‘50’ | The unit price, exclusive of GST, before subtracting item price discount, can not be negative |
27 | Assessable Value | Decimal (13,2) Sample value is ‘5000’ | The price of an item, exclusive of GST, after subtracting item price discount. Hence, Gross price (-) Discount = Net price item, if any cash discount is provided at the time of sale |
28 | GST Rate | Decimal (3,2) Sample value is ‘5’ | The GST rate represented as a percentage that is applicable to the item being invoiced |
29 | IGST Value, CGST Value and SGST Value Separately | Decimal (11,2) Sample value is ‘650.00’ | For each individual item, IGST, CGST and SGST amounts have to be specified |
30 | Total Invoice Value | Decimal (11,2) | The total amount of the Invoice with GST. Must be rounded to a maximum of 2 decimals |
1. To whom will e-Invoicing apply?
A: The e-Invoicing system shall apply to the GST registered persons whose aggregate turnover in the financial year exceeds Rs.100 crore. However, exceptions include Special Economic Zones (SEZ) units, insurance, banking, financial institutions, NBFCs, GTA, passenger transportation service and sale of movie tickets.
2. Can an e-Invoice be cancelled partially/fully?
A: An e-Invoice cannot be cancelled partially but can be cancelled wholly. On cancellation, it must be reported into the IRN within 24 hours. Any attempt to cancel thereafter, cannot be done on the IRN and needs to be manually cancelled on the GST portal before the returns are filed.
3. Will the bulk-uploading of invoices for generation of IRN be possible?
A: No, invoices must be uploaded one at a time into the IRP. The ERP of a company will need to be designed so that it can place the request for the upload of individual invoices.
4. Will there be a facility for e-invoice generation on the common GST portal?
A: No, invoices will continue to be generated on the individual ERP softwares that are currently in use by businesses.
The invoice must adhere to the e-Invoicing standard format and include the mandatory parameters. The direct generation of invoices on a common portal is not being planned at the moment.
5. What are the types of documents that are to be reported into the IRP?
A: The documents that will be covered under e-Invoicing system are as follows-
For more FAQs on e-Invoicing, read our article on e-Invoicing FAQs.